Processes & Systems

After setting the targets, the next step is to assign the responsibilities for implementation. Line management should be held accountable for achieving the objectives, and there should be a clear link to compensation. A growing number of companies have adapted bonus schemes to include non-financial metrics, either internal KPIs or external rankings, such as the Dow Jones Sustainability Index.

For managers to successfully steer performance, they need access to accurate, timely information. In many organizations, non-financial indicators such as CO2 emissions are still gathered by email and collected in spreadsheets. However, a range of IT solutions have been developed in recent years, both by large ERP players like SAP, and specialized firms such as Enablon.

Adapting IT systems to include non-financial metrics can be costly, but in most cases the investment is absolutely necessary to ensure improved performance, and also required to enable external reporting.